India's Warehouse Boom: Leasing Hits Record Highs

India's industrial and warehousing sector has witnessed a remarkable upswing in leasing activity between January and September. Overall leasing across the top 24 cities grew by 7%, reaching 59.1 million sq ft compared to 55.3 million sq ft in the prior year. This expansion is largely attributed to escalating demand from key sectors including light manufacturing, e-commerce, and third-party logistics providers.

Major Tier-I cities like Ahmedabad, Bengaluru, and Delhi-NCR collectively leased 47.2 million sq ft. Meanwhile, Tier-II and III cities also demonstrated growth, with leasing reaching 11.9 million sq ft. The market's positive trajectory is further underscored by a 25% year-on-year increase in fresh supply, totaling 68.9 million sq ft during the same period.

Industry experts anticipate continued steady growth through 2026, fueled by ongoing manufacturing expansion and sustained demand. Predictions suggest that rising consumption, supply chain realignments, and increasing activity in smaller cities will remain key drivers for the sector. This trend indicates a structural shift, with companies seeking high-grade regional hubs to optimize and decentralize operations.